Today gold slid under $1200 per ounce, dropping to a level not seen in three years. Judging by the price action one would think that gold is not only overflowing from precious metal vaults everywhere, but can be found thrown away on the street, where nobody even bothers to pick it up. One would be wrong. In fact, as Bloomberg's Ken Goldman reports, "you could walk into a vault in London and they were packed to the rafter with gold, and the gold would trade from me to you to somebody else. You could walk into these vaults today and they are virtually empty. All that gold has been transferred out of London, 26 million ounces...." To find out where it has gone and why it is never coming back, watch the clip below (spoiler alert: listen for the line: "the Chinese don't want US dollars anymore, they want gold").

There's two sides to this trade...........PHYSICAL and PAPER........that's all you need to know........eventually one loses big. If you're paper trading with the boyz then you're playing their game.......listen to papasmurf

can anyone follow their twisted logic? so if there will be no gold to have in 2014, then that will be the reason it will fall down to 700? and that it hasn't already is only due to china buying with both hands? it only has few more days? until the vaults are empty? nice to know. cheers.

The Bearing Guy got his gold yesterday (0.25 oz Gold Eagle) paid for with BTC. Also yesterday I met with a local who sold me BTC for CA$H, we did the deal, yes, at a Starbucks (respecting "tradition").

"Bitcoin Insider" straightens me out on a few points.

And while fiatleak.com is gone, http://btccast.com/ is now broadcasting the same (Andrew Hodel's) information in near-real-time about BTC trading via the world's BTC exchanges.

I have hunch geman gold reclamation news was delayed abotu two years late deliberly after the cash for gold craze. Notice how that has vanished? then the news comes out? Why no more cash for gold advertisements up in everybodys face?

All I know for sure is shenanegins. I'm calling out sheenanegins going on in the physical gold market

This is true. The Italians are very close to boiling over. I saw the Financial Police threaten a small Chinese girl on a train from Italy to Switzerland. Three grown men demanded that she empty her bag to search for cash money. She resisted them calmly and politely asking for ID. They eventually stopped the train, but she was left in peace after a lot of passengers got upset.

The Italians in charge are fascists, they have been ruled by fascists and EU technocrats, they have lost a lot of respect for the police the government and the the rest of EU.

This applies to almost any other European country. The rulers have become faceless bureaucrats, appointed, not even elected. More and more the national agenda is subjugated according to the international agenda, and people are loosing faith. This will be the last generation where we can expect to live our lives in peace without fighting for our freedom.

The international elite press ahead, "privatizing" = stealing public assets like roads, water, sanitation, health, policing, security, you name it, they steal it. First we pay for it through taxes, then it is stolen and we have to pay for it again through extra taxes. It can't continue, it can't last. You can only drive a people so far up the creek, and they will turn and bite.

The indoctrination of school children makes it difficult for people to speak freely, because there is a racism paragraph somewhere threatening to silence you. But the take over by Chinese is a disaster for many places on earth, and it is one that can only be countered by resistance. This is not something you can be polite about. If you don't like it, prevent it. The politicians have long enough run roughshod over the local populations and demanded that the world become "multicultural".

I think the local populations around the globe have had about enough of this "cultural enrichment". People in need should be looked after, but people that overwhelm, overburden and overextend the locals will be resisted and rejected.

Money should not be the only determinant in this play, because the Chinese can now buy about anything with their fake dollars, and soon even more with their real gold. Europe and the USA is fast on the way to become the servant of China.

The banksters, IMF, the monetary elite like Bernanke and his ilk before him the international gang of hereditary politicians, have some serious problems to answer for. They will soon be able to add another, social resistance and defiance, which can quickly lead to resistance and insurrection.

The Chinese have a great system. They are simultaneously refugees from communist PRC oppression and merchantilist aggressors destroying Western economies. All they want is freedom of speech ... and to own your house. Good luck getting rid of them.

Hey, dude. Congrats on that!!! I've been on the edge of my seat over the last week or so wondering how that trade would work out for you. I'm glad you've now got your shiny in the palm of your (grease-lubed? LOL) hands.

Right cuz it's the metals that are the problem and not the slave driving owners of the mines. Oh if we all could have intangible digitry, a sheep marketplace if you will....problem solved. Keystroke Karma will become you.

"Informed precious metals investors are well aware of the tremendous “squeeze” placed upon gold demand in India, via the draconian suppression of imports. Regular readers of my work understand that this gold-squeeze was, in fact, instigated by the One Bank – through placing enormous pressure on India’s government.

This economic blackmail took the form of attacking India’s currency, the rupee, in global currency markets, and driving its value to record-lows, until the government of India capitulated. With the globalrigging of currency markets (by these same Banksters) now being fully-exposed; this is nothing more than “business as usual” for the One Bank.

But as readers are frequently reminded, actions have consequences. When the supply of gold to the world’s largest precious metals market (and most-astute precious metals investors) was severely restricted; Indians switched to silver – and in a big way.

Even by June of this year, the Indian stampede into silver was already apparent. As noted in a previous commentary; it was at that time that the One Bank was maximizing its efforts at Indian gold-suppression (resulting in a total ban on imports) because monthly Indian gold imports had exploded to an annualized rate of around 2,000 tonnes/year.

In the silver market meanwhile, by the end of May; India had already imported over 2,400 tonnes of silver to meet surging demand, versus 1,900 tonnes in all of 2012. By the end of October, India’s total silver imports amounted to over 4,600 tonnes. Barring a complete collapse; 2013 silver imports in India will hit an all-time high – eclipsing the previous high-water mark of 5,048 tonnes, set back in 2008."

"What is phony here is the lie behind the mythical “current account deficit” of India. As the world’s largest importer of gold bullion, each year India has a large out-flow of the bankers’ bogus paper currencies and a large in-flow of real money: gold. Obviously you cannot have a “current account deficit” (or surplus) in exchanging one form of money for another."

"As is typical of human behavior in any sphere, when demand (i.e. desire) in one form is restricted or prohibited, it morphs into a new form. In the case of Indian demand for bullion, as has been well-documented, some of that demand has moved into the exploding Indian blackmarket for gold. Gold-smuggling into India has now regressed to the same levels which existed before India “liberalized” its market – precisely to eliminate the scourge of gold-smuggling.

But much of this demand also simply morphs into “frustrated demand”, pent-up demand; the economic equivalent of a spring being even more-tightly coiled. The desire for the good (in this case gold) remains, and (as with any un-met desire) if anything it increases with the passage of time.

The obvious example here is China. Until the middle of last decade; purchasing gold in any form other than jewelry was tightly-restricted (and nearly prohibited) in China. What happened when China liberalized its domestic gold market?

Despite being the world’s largest producer of gold; gold imports into China have steadily risen, and now will easily exceed 1,000 tons this year. That is double the amount of gold which the central banks used to dump onto the market each year, which by itself was enough to permanently stifle the global gold market. Clearly after being deprived of gold bullion products for many years, the Chinese people are now buying with both hands.

Meanwhile, with central banks themselves now buying (on a net basis) more than 500 tons per year; this alone amounts to nearly a 2,500 ton/year swing in the supply/demand equation – in a world which mines less than 3,000 tons per year (in total), and that number is now in decline.

Now we have pent-up demand being built-up in other traditional gold markets in Asia. Sooner or later the internal problems caused by the brute-force suppression of gold demand will be worse than the threats/coercion of the One Bank, and these gold markets will be liberalized – as is now taking place in Sri Lanka. Then, like the explosion of gold-demand in China, we will see similar (proportional) tidal waves of demand hit the market when these temporarily suppressed markets are liberalized.

But I’ve left the most-important consequence of this demand-suppression for last: the decoupling of prices in these markets. What was previously described as simply higher and higher “premiums” for the purchase of real bullion (but with one price) is now being simply described as two prices for gold.

This is far more significant than mere semantics, and there could be no better illustration of this important concept than a recent headline:

to a certain degree you are correct. phyzz at honker hongy exchange will exchange phyzz at phys clearting price whilst over in fiat phoney merical they will be trading paper gold for who the fuck cares price, because the phyzz will be all gone..the markets will be replaced on e-bay, kitco ect. that exchange of phys will set price.

So, this Bloomberg guy Ken Goldman talk about walking into a London vault a few years ago and walking into a London vault today. Hold on...! Nobody just walks into any London vaults. This guy is either just lying or else is on hallucinogens. And the interviewer didn't take him up on this....

Maybe the vaults have low inventory levels but this guy did not provide any proof. Export data and ETF data is not proof.

And as of last night the total COMEX registered gold dropped by a quite substantial 20% to less than 500,000 ounces. The bitch is about to break. JPM has already stopped more than 500,000 ounces this month alone, and they won't be getting it in physical gold.

Nobody gives a shit. You know what China will do? Lease it all back to th bankers, You know what you and all your goldbug bottomfeeder stash amounts to? Not enough to move the market a nickel, and you all lose,

Nobody gives a shit. You know what China will do? Lease it all back to th bankers

China did that back in the 1990's with W.st. and lost it. Unlike most americans Chinese learn lesson one time. Now run along and buy some STAWKS for your 401(k) because the bull run in stawks is different this time.

People are spending lots of time trying to educate people and open their eyes to new possiblities. The vast majority of bitcoin supports are long-term believers, that is different from a short term pump.

I'm not sure where the makers of this video are getting their data, but it's absolutely wrong. Please consider the following information when making your opinion:

The most recent data on foreign Treasury holdings shows that China is actually *increasing* their holdings of US debt. In October 2013, China held $1.3045T in US debt, a $10.7B increase from September and the second highest month ever. The highest ever was July 2011 when China held $1.3149T. For the entire year, China's holdings have *increased* by over $84B.

The different Tylers have been all over the map regarding China, from gold, to the strength/weakness of their economy & banking system, to their strength in terms of economic & military power on a relative global scale.

It's my belief, and this is not a morally or emotionally driven statement, but one based on the best objective evidence available and in consideration of current events, that China & Japan are both extraordinarily susceptible to full blown economic crises at this point and into the foreseeable future, but for very different reasons (Brazil, INDIA - I am tempted to put India into the "as bad as" basket with China but they're on the road to massive debasement of their currency as an attempted cure-all" - & Russia have massive problems, too, so the entire BRIC wall is weakening).

I'm speaking of the types and depths of crises that could manifest themselves as full blown economic depressions.

For all the talk of the weak growth in the U.S. and the sickness in the EU, Japan & China are the nations to watch in terms of spotting systemic risks to the global economy for at least the next several years, as they both are dealing with major demographic headwinds & mountains of public and private debt (whether officially recognized or not, and whether in the form of recognized or unrecognized losses on spoiled loans) that make western levels of public/private debt look positively mild by comparison.

China, of the emerging market economies, probably has bigger economic and financial problems than just about any country aside from India, and that's a toss-up.

in fact, aside from the PIIGS, which are alleged "developed" economies and fully integrated with their EU brethren, China's probably facing some of the biggest issues of any major economy in the world, and its provincial banks are in deep shit (the extent to which they are has been MASSIVELY understated).

The whole, repeated ad nauseam meme about China dumping the USD and being on the cusp of "winning" the global game of economic & financial chess is 100% unmitigated horseshit of the highest grade.

I can't see web video on this computer, but the size of the pie and the relative (fractional) size of the slice are different issues... Between July 2011 and June 2013 SAFE's f/x reserves have increased by $250 billion from 3.25T to 3.50T.

If China was not diversifying away from UST (and the only sizable sovereign non-USD alternatives are the Brussels Clusterfuck or the radioactive Yen, since Ben has long since bought all their worthless US Agency paper at mark-to-myth valuations and that game is now off the table) then China would now own $1.4T in Treasury securities not $1.3T (so 100B up is actually 100B less than would be required for constant weighting).

No one knows what China's actual financial situation is (or how bad it is, to be more precise & accurate), because the PBoC and various Chinese bureaucracies that are charged with compiling & reporting official economic & financial data make the their counterparts in the west look great & totally transparent by comparison.

China is intensely export dependent, whether they wish this to be the case or not, and they will be for a long time.

If the world thinks they saw global consumer deleveraging of the discretionary kind as China's exports were shunned in the wake of the 2008 meltdown, they really should prepare themselves for the real deal that still lay ahead.

The already busted Chinese banks and up-to-their-eyeballs-in-debt Chinese speculators that we somehow rarely read about in the west are not going to solve the sliding Chinese export problem through domestic consumption, and the Chinese Government is cutting subsidization of consumption as I type this, and not growing it (just look at repo trends as but one example).

You misunderstood him... he is saying that unless gold jumps to 1700 dollars before year ends then this will be first year of this bull run when gold finishes a year lower, thats what he means, not that gold will go to 700.

He told half the truth and then had to tell a twisted story that defy's logic. China is buying up all the gold and they don't matter how much it drops from manipulation because they know something that many don't. The Chinese know that the dollar will soon be kaput along with a few other currencies so in their mind the Trillions of dollars in Greenbacks is essentially monopoly money. So they are buying strategic resources and such with soon to be fake money. And when it collapses and they try to find out what type of new reserve currency will be used, China will want to have the major corner on as much of the resources as possible.

So when they make a new reserve currency, they will most definitely have gold as part of the basket of resources to be used for every unit of that currency. China knows that all countries will try to put a resource in the basket that they have plenty off and it would defeat the purpose of a reserve currency. They know that the big countries won't go for that but they will go for gold and oil and silver and platinum in the basket.

As counterintuitive as it may seem, big USD bull is about to stampede over all currencies.

The RBI has been the first big emerging market central bank to recognize the inevitability of this and prepare for it, rather than try to swim upstream against the very strong current.

All emerging market economies, and especially those that are more intensely net export reliant, will have to rapidly debase their currencies on a relative basis against King Dollar or literally wither away in the years ahead.

This isn't a moral equation but a mathematical one. Much higher western consumption, and especially that in the U.S. and the wealthier EU nations, is the only hope to cure what ails the global economy at this point.

The now 10 year old commodity bull market is about to take a giant dump as well.

Actually, what you say makes lots of sense. China has a practically infinite internal demand for goods and services it could exploit and does to some extent. The problem is that when you run an export economy and purposely debase your currency your goods and production costs are priced for export. Essentially, your own people cannot afford your own products.

China is letting it's currency slowly appreciate but who knows the real price at any given time? I suspect the huge gold buys are part of the end game.

All emerging market economies, and especially those that are more intensely net export reliant, will have to rapidly debase their currencies on a relative basis against King Dollar or literally wither away in the years ahead.

that statement presumes the old paradigm "america is the worlds greatest consumer" doesn't it? it also presumes the credit donkey nation is still allowed to consume on paper debt promises. I think the "world" is awake to the 30 year american consumption machine driven by easy Al's 'free from gold' policies. Keeping the sham alive one more decade isn't going to matter much. Debt is not wealth. Wealth is not consumption. Now run along and buy some stawks.

I do not think the Chinese mean to beat us militarily, maybe just balance out better but it will take too long. It's just too big a project. However, I do believe they mean to be a world power equal or superior to the U.S. The way to do it is ecomically. That can be done quickly. In fact, we are sort of beating ourselves. You can see in other articles here in ZH that they are buying gold as fast as they can and keeping their own production. They are minimizing exposure to our debt as well as buying whatever they can with the dollars and bond they have. Pretty smart, actually.

However, they are handicapped by several things themselves. They have also practiced and implemented lots of bad Keynesian economics themselves. The reason they have all those empty malls and cities is because of these bad economics. Fake GDP and wasted resources. It works better in China than the U.S. because of the immaturity of their economy and large internal demand.

It will be interesting to see how this plays out but one lesson I think they and even perhaps the old Soviets realize that the real basis of U.S. power is economic, not military.

Yes, but our military power derives from our economic power. It is generally true in all countries over time. You cannot have a strong technologically advanced military with a perennialiy dysfunctional economy. It is why China could field gozillions of soliders but they will walk most anywhere they go.

Hudson's patented procedures definitely do not work, because it would be at odds with the known chemical behavior of gold under those conditions. The result is a worthless salt that has none of the claimed properties. Since gold is expensive, the used chemicals are corrosive and the fumes released during repeated boiling toxic, attempting those procedures is a good way to waste money and/or injure yourself. The countless alternative procedures of obtaining ORMUS also do not work - a material with superconductive properties occurring abundantly in nature would be very easy to detect, yet no such kind of material is known to modern science.

The concept is highly exploitable by quacks, who sell a wide variety of ORMUS preparations under names such as Cleopatra's Milk, Liquid Chi, Prime Enzymes, Zenergy, Sola, Mountain Manna, C-Gro, etc. intended for human consumption as well as in agriculture. They definitely do not contain any gold or other precious metals, which is in fact a good thing, because water-soluble forms of precious metals are very toxic. Mountain Manna even combines ORMUS with homeopathy for double laughs.

ORMUS enthusiasts invented countless even more outrageous theories, linking ORMUS to everything: pyramids, dead people's souls,[6] Bose-Einstein condensate, biblical manna - you name it.[7]The variety of magical powers ascribed to ORMUS was also expanded. As a side note, the notably crazy David Icke thinks highly of the powers of monatomic gold.[8]

yeah, i've read all sides of the story on ormus. completely agree Hudson and almost all the peddlers are more than a bit on the quacky side of the fence. however, did some experiments this year in the garden following the wet method on various sea salts and there was definitely a drastic improvement in seed sprouting, plant vigor and fruit set on those that I dosed with it. what's attributing to that i have no idea, most likely the trace elements & micronutrients in the sea salt. but which trace elements exactly? have a friend who's a biochemist and we're going to do some more experimentation at some point. fascinating stuff, though.

still choose to believe there's something "magical" about all those transition elements/precious metals that modern science has not gotten around to discovering yet.